Last week, Lester's Electronics paid an annual dividend of $2.75 on its common stock. The company has a longstanding policy of increasing its dividends by 3% annually. This policy is expected to continue. What is the firm's cost of equity if the stock is currently selling for $42.5 a share? a.) 9.66 percent b.) 7.77 percent c.) 8.80 percent d.) 9.91 percent